At the time a company prepays a cost: it credits an asset account and debits an expense

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At the time a company prepays a cost:

it credits an asset account and debits an expense account

it debits an asset account to show the service or benefit it will receive in the future

it debits an expense account to match the expense against revenues recognized

its credits a liability account to show the obligation to pay for the service in the future

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-1337099745

12th edition

Authors: Jeff Madura

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Posted Date: Jan 01, 2021 10:08 PM

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At the time a company prepays a cost: it credits an asset account and debits an expense

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ANSWER B It debits an asset account to reveal the service or advantage it will receive in the future ... View the full answer

Financial Markets and Institutions

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